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SPX: Follow Up of the Short Term EWP

By: TheWaveTrading | Monday, January 7, 2013

Just a brief update as there is no change in my short-term scenario:

"As I mentioned last Friday in my opinion from the November 16 low price is
unfolding a Double Zig Zag which is not complete yet as I believe that price
is now involved in the final stages of the wave (A) of the second Zig Zag.
Once the assumed wave (A) is in place I expect a shallow pullback wave (B)
with a target in the range 1444 - 1430 (20 dma), which will be followed by
the last wave (Y) up. If the pending wave (Y) substantially breaches the September
high and above all the following pullback is corrective then we will know
that the Flat option is no longer valid, instead price should be involved
in one of the two Ending Diagonal options discussed above, in such a case
price is not expected to breach the 50 d ma = 1412 until one of the two Ending
Diagonal options is done (Assuming that the ending patterns are confirmed
by the price)"

Despite bears still have not been able to break down the short term pivot
support at 1455.53 odds are very large that the wave (A) of the second Zig
Zag off the November low has been established at last Friday's hod.

My goal is to establish the most likely path that the price of a particular
asset will undertake and profit through ETF instruments both on the long and
short side and mainly with leveraged ones (2 x & 3 x).

Therefore the main purpose of TWT will be to establish investment strategies
regardless if the market is in an up trend or in a down trend, leveraging
the chosen scenario while managing the risk by establishing protective stop
losses.

Hence I will always define the risk, I will try to let winners run the wave
and I will cut the losses if my strategy is wrong.

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